| 4:36 PM EST

Toyota, Mazda Hike U.S. Plant Budget by 55%

More spending for advanced production technologies
#Ford #Toyota #facilities


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Here’s a nice vote of confidence in the future of the U.S. auto industry.

Toyota and Mazda say they will invest another $830 million in the $1.5 billion factory they plan to open next year in Huntsville, Ala.

The companies announced the project in 2017 and confirmed the construction site a year later.

Advanced Tech

The factory with open with the capacity to make 300,000 small crossover vehicles per year. Output will be split equally between all-new Mazda and Toyota crossover models.

Toyota-Mazda plant is almost ready for advanced tooling.  (Image: SellersPhoto.com)

The facility will be Mazda’s only assembly plant in the U.S. The company opened its first U.S. factory in 1987 in Flat Rock, Mich., but Ford acquired 50% of that facility in 1992 and the balance in 2012.

Toyota and Mazda say their new investment will go toward unspecified advanced manufacturing technologies—in part to handle design changes to the crossover Toyota plans to make there—and training for the 4,000 people expected to work at the complex.

Bottom Line

The bullish spending by Toyota and Mazda comes at a time when it isn’t clear how soon the U.S. auto industry’s existing capacity return to high utilization rates.

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